Question 1

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.

Accepted Answer

A) True 
 B)False

Question 2

MRPII will not allow an organization to integrate financial planning with operations and logistics.

Accepted Answer

A) True 
 B)False

Question 3

Dependent demand relates to

Accepted Answer

A)  demand for another inventory item or product. 
B)  the spare parts needed to fill the order. 
C)  VMI inventories. 
D)  the cost of capital for the firm. 
A)  demand for another inventory item or product. 
B)  the spare parts needed to fill the order. 
C)  VMI inventories. 
D)  the cost of capital for the firm.

Question 4

Inventory as an asset on the balance sheet and a __________ on the income statement.

Accepted Answer

A)  liability 
B)  footnote 
C)  statement 
D)  variable expense 
A)  liability 
B)  footnote 
C)  statement 
D)  variable expense

Question 5

Discuss capital cost and include both the hurdle rate and WACC in your answer.

Accepted Answer

Sometimes called the interest or opportu

Question 6

JIT, MRP, MRP II, and DRP all incorporate some version of the basic EOQ model into their philosophies.

Accepted Answer

A) True 
 B)False

Question 7

"Batching economies" and "cycle stocks" are the same.

Accepted Answer

A) True 
 B)False

Question 8

The ABC analysis is based on Pareto's Law.

Accepted Answer

A) True 
 B)False

Question 9

An organization selling its products FOB destination holds the title to the goods until:

Accepted Answer

A)  picked up by the trucker 
B)  products reach the customer's facility 
C)  the customer is invoiced 
D)  the customer receives the goods into their inventory system 
A)  picked up by the trucker 
B)  products reach the customer's facility 
C)  the customer is invoiced 
D)  the customer receives the goods into their inventory system

Question 10

Discuss how seasonality can affect inventory.

Accepted Answer

Organizations that are faced with season

Question 11

Seasonal stocks are not influenced by

Accepted Answer

A)  EOQ. 
B)  weather. 
C)  transportation. 
D)  holidays. 
A)  EOQ. 
B)  weather. 
C)  transportation. 
D)  holidays.

Question 12

Inventory and the GDP grew by ______ amounts between 1994 and 2010.

Accepted Answer

A)  the same 
B)  different 
C)  inversely proportional 
D)  exponential 
A)  the same 
B)  different 
C)  inversely proportional 
D)  exponential

Question 13

Most organizations would not operate under conditions of certainty for a variety of reasons.

Accepted Answer

A) True 
 B)False

Question 14

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory.

Accepted Answer

A) True 
 B)False

Question 15

EOQ can only be used for "push" inventory.

Accepted Answer

A) True 
 B)False

Question 16

WIP inventories

Accepted Answer

A)  not included on the balance sheet. 
B)  are associated with manufacturing. 
C)  are the same as VMI inventories. 
D)  are not impacted by EOQ. 
A)  not included on the balance sheet. 
B)  are associated with manufacturing. 
C)  are the same as VMI inventories. 
D)  are not impacted by EOQ.

Question 17

Storage space costs are not variable.

Accepted Answer

A) True 
 B)False

Question 18

Setting safety stock levels for an organization is now a science.

Accepted Answer

A) True 
 B)False

Question 19

Discuss how logistics interfaces with finance, marketing and manufacturing from an inventory standpoint.

Accepted Answer

Marketing The primary mission of marketi

Question 20

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?

Accepted Answer

A)  procurement 
B)  transportation 
C)  production 
D)  demand 
A)  procurement 
B)  transportation 
C)  production 
D)  demand

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.

MRPII will not allow an organization to integrate financial planning with operations and logistics.

Dependent demand relates to

Inventory as an asset on the balance sheet and a __________ on the income statement.

Discuss capital cost and include both the hurdle rate and WACC in your answer.

JIT, MRP, MRP II, and DRP all incorporate some version of the basic EOQ model into their philosophies.

"Batching economies" and "cycle stocks" are the same.

The ABC analysis is based on Pareto's Law.

An organization selling its products FOB destination holds the title to the goods until:

Discuss how seasonality can affect inventory.

Seasonal stocks are not influenced by

Inventory and the GDP grew by ______ amounts between 1994 and 2010.

Most organizations would not operate under conditions of certainty for a variety of reasons.

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory.

EOQ can only be used for "push" inventory.

WIP inventories

Storage space costs are not variable.

Setting safety stock levels for an organization is now a science.

Discuss how logistics interfaces with finance, marketing and manufacturing from an inventory standpoint.

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?

Supply Chain Management: an Overview

Role of Logistics in Supply Chains

Global Dimensions of Supply Chains

Supply Chain Relationships

Supply Chain Performance Measurement and Financial Analysis

Supply Chain Technology-Managing Information Flows

Demand Management

Order Management and Customer Service

Transportation-Managing the Flow of the Supply Chain

Distribution-Managing Fulfillment Operations

Supply Chain Network Analysis and Design

Sourcing Materials and Services

Operations-Producing Goods and Services

Supply Chain Sustainability

Strategic Challenges and Change for Supply Chains

Filters

Exam 9: Managing Inventory in the Supply Chain

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.

MRPII will not allow an organization to integrate financial planning with operations and logistics.

Dependent demand relates to

Inventory as an asset on the balance sheet and a __________ on the income statement.

Discuss capital cost and include both the hurdle rate and WACC in your answer.

JIT, MRP, MRP II, and DRP all incorporate some version of the basic EOQ model into their philosophies.

"Batching economies" and "cycle stocks" are the same.

The ABC analysis is based on Pareto's Law.

An organization selling its products FOB destination holds the title to the goods until:

Discuss how seasonality can affect inventory.

Seasonal stocks are not influenced by

Inventory and the GDP grew by ______ amounts between 1994 and 2010.

Most organizations would not operate under conditions of certainty for a variety of reasons.

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory.

EOQ can only be used for "push" inventory.

WIP inventories

Storage space costs are not variable.

Setting safety stock levels for an organization is now a science.

Discuss how logistics interfaces with finance, marketing and manufacturing from an inventory standpoint.

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?

Supply Chain Management: an Overview

Role of Logistics in Supply Chains

Global Dimensions of Supply Chains

Supply Chain Relationships

Supply Chain Performance Measurement and Financial Analysis

Supply Chain Technology-Managing Information Flows

Demand Management

Order Management and Customer Service

Transportation-Managing the Flow of the Supply Chain

Distribution-Managing Fulfillment Operations

Supply Chain Network Analysis and Design

Sourcing Materials and Services

Operations-Producing Goods and Services

Supply Chain Sustainability

Strategic Challenges and Change for Supply Chains

Filters